Explore BrainMass

Explore BrainMass

    Calculating Expected Return, Std Deviation of Stock J/Market

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please see attached file.

    The market and Stock J have tire following probability distributions:
    Expected Returns
    Probability rM, rl
    0.3 15% 20%
    0.4 9 5
    0.3 18 12
    a. Calculate the expected rates of return for the market and Stock J.
    b. Calculate the standard deviations for the marker and Stock J.
    c. Calculate he coefficients of variation for the markdt and Stock J.

    © BrainMass Inc. brainmass.com November 24, 2021, 1:47 pm ad1c9bdddf


    Solution Preview

    Please refer the attached document. The formulas are typed bu using equation writer. It may not print clearly here.



    Probability (p)

    0.3 0.15 0.045 0.135 0.015 0.000225 0.000067
    0.4 0.09 0.036 0.135 -0.045 0.002025 0.000810
    0.3 0.18 0.054 0.135 0.045 0.002025 0.000608

    Solution Summary

    Solution shows step by method to calculate Expected Return, Standard deviation and coefficient of variation for Stock J and Market.